JGB futures grabbed on to the coat tails of....>

JGBS: JGB futures grabbed on to the coat tails of Tsys, reversing overnight

losses and then some to settle 23 ticks higher Wednesday, albeit a bit shy of

best levels.

- JPY strength and the Nikkei 225 reversing its early gains to trade sharply

lower provided some support for the space (on top of the wider demand for core

FI), even with slightly warmer prospects re: South Korea/Japan trade matters in

the background.

- Focus continues to fall on the Olympics, although the minister responsible for

the games suggested that a delay is "inconceivable."

- Outperformance of the super-long end gave way in the afternoon, with an eye on

tomorrow's 20-Year supply.

- The latest round of 5-10 Year BoJ Rinban ops revealed a moderation in the

offer/cover ratio (2.22 vs. prev. 3.85), although average spreads weren't as

tight (-0.017 vs. prev. -0.036).

- The aforementioned 20-Year supply & quarterly BSI survey headline tomorrow's

docket.